Role and development of the Corporate social Responsibility(CSR) in India

Introduction:

A self-regulating business model known as corporate social responsibility (CSR) enables an organization to be socially responsible to its public.
A company that practices corporate social responsibility makes a deliberate effort to conduct its operations in a manner that benefits society and the environment, rather than harming them. CSR can enhance society and help businesses project a positive image.Businesses that practice corporate social responsibility (CSR) accept responsibility for how their actions impact society and the environment and aim to do the right thing, not just make money. They consider how they may give back and conduct business in a way that helps everyone, rather than just making money.
For instance: A large clothing manufacturer wants to sell as many shirts as they can. However, CSR also means that they are concerned about issues like paying workers a fair wage, using environmentally friendly products, and helping out the community. Perhaps they take action to lessen pollution or give a portion of their earnings to charitable causes.

Being a good person is only one aspect of CSR; it’s also good business. Consumers today favour companies who are concerned with more than simply their bottom line. Workers who work for organizations that give back feel more proud. Additionally, because they foster loyalty and trust, companies that make ethical and sustainable investments typically see better long-term results.
Fundamentally, corporate social responsibility (CSR) is about companies realizing that their prosperity is linked to the welfare of society. Making a difference while still operating a profitable business is more important than focusing only on earnings.

Historical development of the Corporate Social Responsibility:

The idea of corporate social responsibility, or CSR, has developed over a long period of time has been influenced by company practices, global issues, and society expectations. Although the concept of companies giving back to society is not new, corporate social responsibility (CSR) as it as exists, we know that the development of CSR will become easier to understand through several key phases. 
1. Early philanthropy (before the 20th Century:
Businesses that have practiced philanthropy prior to corporate social responsibility (CSR) were frequently run by privileged industrialists who felt obligated to give back to the community. Business titans like Andrew Carnegie and John D. Rockefeller made significant donations to the arts, healthcare, and education during the 19th century. Often referred to as “The Gospel of Wealth,” their philosophy encouraged the rich to use their wealth to improve society.

2. 2. Modern CSR’s Emergence (1950s–1970s):
   The official conversations about CSR started in the 1950s. The idea was first proposed by economist Howard Bowen in his 1953 book Social Responsibilities of the Businessman, in which he made the case that companies have a responsibility to take society into account.
   Social movements like the civil rights movement, environmental activism, and consumer rights campaigns forced companies to consider factors other than profits in the 1960s and 1970s. In reaction to public pressure, businesses started implementing social responsibility programs, sustainability projects, and ethical sourcing. Corporate behaviour was also influenced by the first environmental laws, such as the Clean Air Act (1963) and the Clean Water Act (1972), in the United States.

3.The institutionalization of CSR(1980s-1990s):
CSR had gained popularity as a business idea by the 1980s. Global institutions such as the World Business Council for Sustainable Development (WBCSD) and the United Nations (UN) started working for ethical and sustainable business practices.
Large companies started releasing CSR reports, establishing moral standards, and collaborating with NGOs in the 1990s. John Elkington promoted the idea that companies should strike a balance between social and environmental responsibility and financial success in 1994 by introducing the Triple Bottom Line (TBL) concept, which emphasizes People, Planet, and Profit.

.4. CSR in the 21st (Twenty-First Century): From Optional to Crucial:
CSR changed from a voluntary initiative to a crucial component of business strategy in the 2000s. Mandatory CSR rules, such as the United Nations Global Compact (2000) and the ISO 26000 standards (2010) for social responsibility, were implemented by governments and international organizations.
As social media and the internet expanded, businesses were held to a higher standard of public accountability. Concerns include diversity and inclusion, climate change, ethical supplier chains, and
the importance of corporate transparency increased. Nowadays, customers demand that companies take action on environmental and social concerns.

Note: Examining Carroll’s Corporate Social Responsibility Pyramid

Legal responsibility is at the top of this pyramid, while economic responsibility is at the bottom. These are two things that companies must do as part of their Corporate Social Responsibility. Higher up is ethical responsibility, which calls on companies to behave morally. While it’s not necessary, doing so is anticipated and has a beneficial effect that extends beyond the company.

Lastly, charitable obligation is at the summit of the pyramid. Companies that engage in some form of corporate philanthropy are viewed as more desirable, yet charitable activities are neither necessary nor expected.

Significance: Which Companies Need to Comply with CSR?
Section 135 of the Companies Act of 2013 and Schedule VII of the Indian  Companies Act  2013 outline the requirements that must be fulfilled by companies in order to achieve their CSR duties.

Companies that reach any of the following levels during a fiscal year are subject to the CSR requirements:
• A net worth of at least 500 crore rupees
• A turnover of at least ₹1,000 crore
• A net profit in the previous fiscal year of at least ₹5 crore. Companies that qualify must: 1. Establish a CSR committee.
2. Invest in CSR initiatives at least 2% of their average net profit over the previous three fiscal years.

CSR’s role along with advantages in India:
In India, corporate social responsibility, or CSR, is essential for promoting sustainable development since it makes sure that companies support the welfare of society. Large corporations are now required to contribute a portion of their profits to social initiatives as a result of the Companies Act of 2013, which made CSR mandatory. As a result, businesses are becoming more involved in fields including healthcare, education, rural development, and environmental preservation. In addition to improving a company’s reputation, corporate social responsibility (CSR) helps companies align with national development goals and foster inclusive growth by tackling urgent societal concerns.
Beyond being kind, corporate social responsibility (CSR) in India offers firms the opportunity to build solid ties with the community, boost employee satisfaction, and win over consumers.

Businesses that actively participate in CSR programs frequently see increases in consumer satisfaction and brand loyalty. CSR also encourages businesses to create sustainable solutions that improve business operations and society, which promotes innovation. Over time, CSR ensures responsible corporate citizenship, has a good economic and social impact, and advances the nation as a whole.

Talk about a few noteworthy projects by renowned companies:

 Ashok Leyland.

Runs a fun bus in Delhi and Chennai. This vehicle, which has a mechanical lift, transports students with disabilities, as well as those from shelters and company primary schools, for a picnic one day. Additionally, the firm provides around 3.5 lakh drivers with AIDS awareness and prevention programs in its plants in Hosur, Tamil Nadu

Bharat Petroleum Company

Through its rainwater harvesting initiative, Boond, in collaboration with the Oil Industries Development Board, chooses villages that are experiencing drought and transforms them from “water-scarce to water-positive.” Rural health care, HIV/AIDS prevention and treatment, and village adoption are some of BPCL’s other social initiatives.

Indian Oil Corporation Limited(IOCL)

It runs the Indian Oil Foundation (IOF), a non-profit trust, which works for the preservation and promotion of the country‘s heritage. IOCL also offers 150 sports scholarships every year to promising youngsters. Some of its other initiatives lie in the domains of clean drinking water, education, hospitals and health care.

Conclusion:

In India, corporate social responsibility, or CSR, is an effective instrument and played very crucial role in promoting sustainable development and a feeling of corporate responsibility. In addition to helping communities, corporate social responsibility (CSR) improves stakeholder trust, corporate reputation, and company longevity. Businesses that keep incorporating corporate social responsibility (CSR) into their main plans make a substantial contribution to the advancement of the country and guarantee a more equitable and responsible model of economic growth.